Brits deny pushing Kiwi farm prices up

One of Britain's richest families has won approval to pay $4.2 million for its 10th farm in New Zealand - taking its farm holdings to more than $50 million.

The big-money purchases are raising fears that overseas investors are driving up farm prices and pricing New Zealanders out of the market.

The Rausing family has won approval from the Overseas Investment Office to buy the 595-hectare (about 1500-acre) Katoa Station at Te Araroa, in the Gisborne district.

Hans Rausing, 80, and his family were sixth on the British Sunday Times Rich List this year, with an estimated worth of 5.4 billion (NZ$14.4 billion).

Their fortune was made from the TetraPak packaging company, founded by Hans' father, Ruben, though they sold their interests in that company about 10 years ago.

Since 1999 the family, through its Ingleby company, has spent $53.5 million buying 10 farms in Gisborne, the King Country and South Canterbury.

Federated Farmers Gisborne-Wairoa president Jean Martin said farmers had complained that the purchases were driving up prices and squeezing out local farmers.

"If somebody puts their property up for sale the farmer next door might offer $3.5 million, but these people come along and offer $4.5 million or $5 million.

"They've got big chequebooks and if they pay above the market rate they're pushing people out," Ms Martin said.

"But the same is happening with Landcorp, the government agency - they've bought a lot of farms too."

Ingleby New Zealand general manager Rick Braddock denied his company was paying too much for the farms. "We pay the market rate."

The company planned to invest in Katoa to improve its productivity.

"There will be more full-time jobs, and also work for contractors and consultants."

The company had put a covenant on one erosion-prone section of the farm to protect native bush,.

Ingleby offered scholarships for students and sponsored the Ngati Porou East Coast rugby team, Mr Braddock said.

It was looking to the long term, for "inter-generational investment".

Hans Rausing's daughter Lisbet visited New Zealand occasionally and took a keen interest in the agricultural businesses, he said.

Ingleby already owns Raincliff and an adjoining property in South Canterbury, Pakira, Waikura, Puketoro, Waitahaia, and Ruatahunga in the Gisborne district, and Puketiti and a farm near Piopio in the King Country.

- © Fairfax NZ News